The beat goes on in Brevard.

Understanding that life is sometimes a dance, you go forward one and back two and then three forward. Real estate has the same rhythm, and the dance we are dancing is the quick step with all movements being forward.

Statistics continue to support the increased activity each month in Brevard County, and those who snooze will lose in this market. The premium homes and condos for these bargain prices are now showing that the best of the best are being absorbed. Local Realtors agree the correction in this market is being seen with multiple offers on good properties and some scarcity of listings in a few neighborhoods.

Financing still is the difficult part of the transaction and many cash buyers are showing their strength in selecting the values and knowing they can move forward quicker than others. The cash buyer controls the best transactions.

Appraisals continue to be the problem, with many of our local lenders using out-of-town appraisers. It is understood that appraisers are bidding for these jobs and lowering prices to be competitive. The out-of-town appraisal groups are undercutting the locals and capturing the jobs. Interesting that the cost does not appear to be passed on to the consumer. It is no wonder appraisals appear to show inconsistencies in the competitive properties selected.
The appraisers who are not in this market do not know which neighborhoods are considered comparable. Can the borrower insist on a local appraiser?

This appraisal problem, apparent in our area, does not appear to benefit the lender as many new loans are lost due to the low appraisals. Refinancing is effected in the same manner.
The lending institutions with strong local leadership will find a way to change this procedure and create the fairness this market deserves. For the first time in several years, it has been reported that developers are now coming into the market to capture the value of vacant land that is prime for new construction.

With the planning and permitting time period needed for development, the time may be right for land transactions to begin to show a significant increase in activity.
With a two- to three-year absorption rate for residential homes and the necessary time needed to prepare and plan for a development, it would be wise for developers to begin to take advantage of the low land prices and plan for the next several years.
As the hot summer sun beats on Brevard County, let the rhythm of the dance continue.

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Realtors can offer guidance.

Buyers are flocking to Brevard, and the reasons are clear. They have heard of the "eco tour" on our rivers, highlighting our natural wonders. They have heard of kayaking through the zoo to see animals in their natural habitat. Some have experienced skimming through the wetlands on an airboat. Others just enjoy the walk through the old towns, dining on the street cafes or enjoying the many theatrical performances our cities offer.

Although the interest rate edged up, the contracts continue to be written as buyers pounce on the great values in Brevard County. A good Realtor can help guide you through the process. Those looking at property on a daily basis know that the best buys are going quick. Yes, the market is beginning to change. The surplus still exists in all phases of the housing market, and prime properties are being scooped up by the knowledgeable buyers.

The time is right. Sellers who are pricing their properties correctly in this market are experiencing action and possible offers. Problems still plague the financing aspects of the real estate purchase, so buyers and sellers need to be aware of this possibility. Low appraisals also continue to be an issue.

The problem circumstances are highlighted in the condominium market. If the developer still owns a majority of the units, financing may be limited and almost, in some cases, impossible. If there is a program for special financing in these circumstances, I have not yet, found it but I am still searching.

Foreclosures continue, and short sales are changing. Investors specializing in short sales are contracting at a rapid rate, negotiating with the lender and flipping the property. Buyers and Realtors need to be aware that if the short sale is a flip, a lender for the buyer may require more time prior to financing. To further explain: a flip is when an investor contracts on the short sale and lists it for sale prior to the investor closing on such a property. Thus, it's reselling the short sale or flipping the property to a second buyer with the intent of capturing a profit in the second transaction. The transactions usually have a simultaneous closing where the investor closes in the morning and the buyer closes in the afternoon.

Fascinating! People are creative in every market. Knowledge is the key to closing on such a property. Researching the property, the seller, the lender and the flipping investor may be the keys to closing on this transaction if it is still a good deal for the buyer being represented.
Real estate is now a complex process. Working with a professional in the business full time is an absolute necessity in today's market.

The Realtors struggle with these changes as do the sellers and buyers, but a sunset walk on the beach will lower your stress level.

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Buying on water an option...

In the early hours today, the sun was rising and the water was like glass. It was just perfect.
In a spectacular three minutes, five dolphins splashed in the wake of our boat. They must have known my granddaughter was with us as they put on their performance.
Welcome to the waterfront in Brevard County.

News reports continue to boast that Brevard County is undervalued. When I search the Multiple Listing System on Realtor.com, I must agree that some of the best buys are on the waterfront.
Oceanfront condos still lead the way in an oversupply, thus, tremendous values are in this category. Canal-front homes are certainly available in price points that are hard to believe.
Riverfront under $1 million is a price range that did not exist in Brevard County for many years, yet is available in today's market.

The economy is consistently showing signs of improvement. Is this oversupply in housing going to exist for many years? Are people continuing to purchase at an increased rate? The fact is, the contracts are being written and negotiated to a meeting of the minds, with an increased rate of activity that continues. Still, I predict an oversupply in housing for several years.

A balanced market is not forecasted for two to three years if this action is consistent throughout a two-year period. Sellers who are wanting to buy in this market must agree to sell low and understand that they, in turn, will buy low. This will offset the impact of a low offer.
Now that the interest rate has increased -- but is still at a very low rate -- one needs to jump into this housing market before there's another rate increase.

Increases or decreases in rates are controlled by the secondary money market and the economic situation. Rates under 5.5 percent still are excellent rates. The truth is, one does not know what the future rates will be. Appraisals still are coming in on the low side. If a buyer or seller has no consistent proof of the price that is negotiated in a contract for sale and purchase, it is recommended that a special clause showing the contract is contingent upon an appraisal reflecting at least the value of the contract price and performed within two weeks of date of acceptance, be added to the contract.

Your Realtor can assist you with the wording. If the appraisal results are known up front -- that is, in the early stages of the loan process -- any adjustments that must be agreed by both buyer and seller are done prior to the seller moving out of the property.

Hopefully, this market devaluation will not remain in existence much longer. It is the low sales of the past that influence the value indicated by the appraiser. A cash contract is an exception as no appraisal is needed. Bring on the cash contracts.

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Now is the time to buy!

Wow! This market is exciting and challenging.

Real estate sales continue to sizzle as the summer heat comes to Florida. Carey Bay, in a DSNews article published June 3, writes,

"For the first quarter of 2009, only six states saw an increase in home sales,
and Florida was among the lucky few."

Carey further mentions that Central Florida seems to show more significant signs of recovery than other regions. The Home Building Industry is reporting an increase in new construction, which makes us all smile.

All of the indicators point to this being the right time to buy:

• Federal tax rebate for first-time homebuyers in the amount of $8,000. Note: First-time homebuyers must finalize their purchase by Nov. 30 to get this tax credit.
• Numerous financial assistance programs are available. Some offer a bridge loan to facilitate the use of the $8,000 tax credit as a down payment. Your Realtor can assist you with this information.
• Continued low interest rates.
• Continued availability of inventory in the housing market.
• Press releases indicate Brevard County is undervalued.Predictions of a mild hurricane season.

For all the reasons listed above, the Brevard real estate market has continued to be blessed with this flurry of action as buyers review their many opportunities for valuable purchases in today's market. Real estate sales strengthen the economic situation in so many ways that this is the first indication of economic recovery. The real estate market continues to face obstacles in continued low appraisals, difficulty in closing short sales and frustrated buyers who have lost money on past home sales.

The positive effects of this action far outweigh the problems. We have all learned to tighten our budgets, find energy and money-saving ideas to lower our household expenses, analyze and prepare for loan processing problems and boost those low appraisals by cash sales showing some value stability in this market.

Under the new Foreclosure Alternative Program outlined by President Obama, there is some help to streamline the short sale process creating a positive effect in moving the inventory of short sales and expediting the closing process.Local lenders are offering flexible and creative financing programs to enhance the opportunities for financing. Jumbo loans are enticing buyers with new lower rates.

The beach salt air brings a tranquility to our busy lives, the shuttle allows us to marvel in our manmade accomplishments and the abundance of Florida wildlife fascinates us daily. We are so fortunate to live in Brevard County.

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Brevard buyers picking up pace.

The action is now moving from the low $100,000 price range to include up to the $400,000 range. This reflects the buyer's confidence in the upper middle values in today's market.
A slight increase in sales in the higher end market also reflects an increased confidence by buyers.

Fewer listings are coming on the market each month, giving a glimmer of hope for a change in this buyer's market . . . possibly sooner than the now-predicted three- to five-year period.
Interest rates continue to flutter but still hover below the 5 percent level, further enticing buyers to commit to purchase.

Prices continue to dip slightly but not nearly at the rate of depreciation in the past few months and the past year. Some neighborhoods show fewer to no available homes, but contracts reflecting any market appreciation are constantly stymied by low appraisals and are unable to close. As many buyers are now paying cash as are those who choose conventional financing. Federal Housing Administration and VA financing still are popular methods of purchase for moderately priced homes.

The luxury market is now being assisted by some lenders offering more competitive rates on jumbo loans, but lenders still are conservative in appraisals and loan-to-value ratios of 30 percent to 70 percent in this category.
Brevard County continues to find recognition for all it has to offer in housing, in climate, in beaches and lifestyle.

Having recently traveled to Alaska and finding cold temperatures in addition to rain, my heart still finds comfort in everything our area has to offer. Our own Northern Lights are the spectacular sunsets on the Indian River or the night launches that shake the earth with their power. No, we do not have the magnificent glaciers with aqua crystallized accents and the moose and bears that traverse the vast wilderness, but I will opt for the dolphins as they capture the bait fish.

I will enjoy the blue herons and our favorite river bunnies. And I will close my eyes at night as the stars and the moon shine through my window. There is nothing not to love in Brevard County. Spoken by a true native Floridian.

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Things looking up for Brevard...

As the much-needed rains continue to fall on Brevard County, the grasses get greener and the birds and wildlife are happier. As the buyers continue to bring the deluge of contracts on properties, the bankers, the sellers, and the Realtors begin to smile. Life in Brevard keeps getting better.

The interest rates flutter but we are promised continuous optimism in the financing arena. The stock market echoes our prediction of economic strengthening and the nation comes a little closer to ending our crisis. With still an abundance of inventory in our area, there is a long way to go before properties appreciate.

The market in 2004, 2005 and part of 2006 jumped so very high, that in order to bottom out, it had a long hard fall. It is estimated that values today in our area, are in the range of 2002 prices.
In a few states and cities that showed a minimal depreciation factor over the past several years, it should be noted that those areas did not show a significant amount of appreciation in 2004 to 2006. Those areas are in the minority as most states and cities across the United States jumped high and now have fallen back.

Continuous efforts to increase the market value are stifled by the conservative nature of the lending institutions who are wrapped in tighter regulations. Loan processing is tougher and longer than in the past year. Lenders require more information and documentation from buyers prior to a loan commitment.

Insurance rates have, for the most part, shown a slight decrease, and more significant decreases are seen if a wind mitigation inspection shows construction that withstands hurricanes.
Incentives for storm protective features, energy/green features, grant rewards to buyers and sellers who purchase quality upgrades.

Buyers show continuous confidence that the real estate market is at or very near the bottom. Fewer "for sale" signs dot our neighborhoods, and some are not sure if the signs floated away in the rains or properties have sold. I will vouch for the sold. The activity in sales contracts each month since February have continued to increase.

Brevard County is a very special place to call home. The concern for the homeless, the hungry and the poor, by all of our residents, reflects the sensitivity and the caring nature of the people who live here. Even the Loggerhead turtles search every shore in the world and choose here to lay their eggs and give us the pleasures of witnessing their hatching.

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Appraisal can set a home's sale price.

In this market, buyers cannot possibly overpay for a property if they are financing or the contract for sale and purchase is contingent upon the property appraising at contract price.
The beauty of purchasing in this "buyer perfect" market includes:

• Interest rates under 5 percent.
• An abundance of properties to choose from.
• An $8,000 tax credit for first-time homebuyers.

Now buyers have the best protection possible: lenders in our area and in most of the United States are mandated to proceed with caution in the appraisal process. The appraisal is scrutinized in "underwriting," and appraisers are following procedures to select sales from the past six months that are comparable to the property being financed. Appraisals, therefore, are low, and lenders will not lend if the appraisal or value of the property is indicated to be less than the purchase price.

In addition to using sales within the past six months, appraisers must use a "depreciated market adjustment" for the months past the time of the sale. This adds to the lowering of the appraised value. What does this mean to the seller? The motivated seller must price his/her property at the appraised value.

Fair or not fair? In my opinion, this keeps the market from increasing in value. The fact is, there is nothing we can do about this until the abundance of properties are absorbed and the balance of supply and demand comes to the real estate market.

The possible solution or correction to this appraisal issue is obvious: Sell low and buy low. Use the market to your benefit. We cannot change the past, and now we have to live with the conservative lender practices. It seems to be a lateral move if you lose on the sale and gain on the purchase.

As our crystal clear skies come with the occasional threat of thunderstorms, so too this wonderful, very active market, has some black clouds. But the sun continues to shine on Brevard County.

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